Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1887-07-05
rnr GREAT WHEAT COLLAPSE

We give the facts Ia connection with
The great wheA, failure OF the west.
There Il 20, the least occasion for sur
prise In The dramatic collapse OF the
wheat corner a. Chicsgo. The nominal
value of wheat In stock chsnged about
ss.OoOOoo In = single day, while on loo''
90 90 bushels sold a. Chlcago, and so,'
On 90 bushels Al New York, In single
day. the change In nominal value Involved
The irarsfcr OF = far larger sum from one
-, olspeculAiors % another. Bat there
h.s been 10 reason % expect any other re-
sult. The clique caleulsiei rightly In re-
gard to the large foreign demand for wheat
bai from The drsi. miseAlculAicd wildly IN
regard u The quantity available In this
country for export
The preliminary report oi exports In
Nav hss fsst be- n Issued. II shows that
- ggs bushels OF wheat and IS, tsl bar
reis of four went abroad. ,qaivAleni 70
n. 20. .asl bushels OF wheat. against H..
.ss s.i In The same month last year The
average value Of the wheat exported va.
% cents per bushel which proves thai
the recent gaotAiiOn of - % 9i cents f0r
cash wheat Ia Chicsgo was purely ncii-
uous. IN Msy. when the clique wAs hold
les. not a bushel could pay charges 10 the
seaport. and yet millions of bushels were
shipped 90 foreign countries, IN pari ny
TIE clique itself and 81 l0ss, Ia order 70
resllre money for carrying The constantly
Increasing supply offered. Bui looking A.
sciual exports IL appears that The nti tA'
ports of wheat la ten months preceding
May had smouutei - rs, To-, ,'ts bushels
nour inciufcd. 50 that. with the May ship
msuts. foreign markets had taken from us
l35.4CO. ll5 bushels. against sl,'ts,' 40
bushels for eleven months OF The previous
year. Even now exporters are buying
considerable Quantities whenever tAc
market yields.
The fatal error 10 this speculation wAs
ln UNDER siimAtipg the quantity available
in this country. Months ago II was
shown that Including the large quantity
brought over from The previous year TIE
surplus available for export 20 JAW Isl,
would De about l9s, ,OoO,oOO bushels. That
meant, OF course. that the qaantiy OF
wheat In the hands Of farmers and dealers
In the interior was greater by many MT
lion bushels than the clique estimated.
They chose 90 test The accuracy oitheir
estimates by stalking millions oi Their own
and millions borrowed. The result !, =
collapse In which many innocent persons
suffer severely with those who are respon-
slble for maintaining an artinclA maTkct'
Wheat has KEEP, coming In vast quantities.
and even on the day OF the break u wss
said that 900 carloads were to be reeeiV'
ed Al Chicago. while i,0OO, 900 Bushels or
more awaited storage. The visible sup.
ply exceeded 90, ,O0O.0 600 bushels, besides al
he wheat iu farmers hands and country
elevators. and all the -four on hand.
The Immediate effect OF this collapse Il
to set free some money which has been
employed In wheat speculation, but not
nearly 30 much - IL usually Imagined.
The quantity OF wheat In commercial
markets has not changed since last Saiur.
day, and the only difference Ia the amount
OF moaey required 20 carry ,hA, Aoeumala'
tion Is due 20 the decline In price. The
substantial consequence OF the great spec
ulation i that the country has 10 carry
over, ~ heavy charge 20 Us financial re-
sources. abou. 50, ,OOO. 900 bushels OF wheat.
much OF which might have been marketed
abroad, had prices been allowed 10 nnd
their natural level. Most OF ihis surplus
has been transferred from farmers 10 deal.
ers In Chlcsgo and other commercial
cities. and so has 10 be carried by the re-
sources OF commercial centres. The ef.
f,ct will be seen In less demand for the
new wheat which farmers are about TO
ofer.-Nfias Ilrmer.